Leading QSR restaurant chain Subway said it has appointed private equity firm Everstone Group as the master franchisee for India, Sri Lanka and Bangladesh. The company said the agreement is part of its multi-year transformation strategy focusing on global expansion.
In India, so far, Subway restaurants were operated by multiple regional master franchises and sub-franchises. The American restaurant brand had been looking at streamlining the Indian operations through a single master franchise for some time now.
New restaurants
Under the new agreement, Subway said more than 2,000 new restaurants will be opened across India, Sri Lanka and Bangladesh in the next 10 years.
“Everstone, with expertise in growing and building brands in India and South Asia, will lead Subway on an ambitious growth trajectory, with a commitment to more than triple the number of restaurants in 10 years from the nearly 700 locations that exists today,” a company statement added. Everstone Group is also the master franchisee of Burger King in India besides other investments in the QSR space in South Asia.
“Today’s announcement represents a significant step in Subway’s transformation journey and global expansion plans. Everstone, with extensive knowledge and proven restaurant operational expertise in the region, is the ideal partner as we begin this new chapter for Subway in India and South Asia,” said John Chidsey, Chief Executive Officer of Subway.
New design
The company said the existing restaurants will be upgraded and the new restaurants will be modelled on the company’s new ‘Fresh Forward’ design. This will enable the company to focus on a strong digital-first strategy while offering consumers with comfortable guest indoor dining spaces as well as numerous delivery and order ahead options.
Stating that the scale of this agreement is “unprecedented” with a focus on tripling Subway’s presence in India over the next 10 years, Mike Kehoe, EMEA President at Subway, added, “We’ve seen huge demand from existing Subway guests in India and couldn’t be more excited to partner with Everstone to strengthen our presence and bring our beloved subs to even more Indian guests.”
“We strongly believe that our significant experience in the QSR space, our strong digital focus, our ability to innovate, as well as our proven execution capabilities, will enable Subway to become a dominant player in the region,” added Sameer Sain, Founder and CEO, Everstone Group.